Thanks for the explanation. I figured that this was pretty much the case. The "problem" that I have is that previously, one could "get away" without any Tax or duty. This has changed during the last few months.
What I don't understand why VAT is payable. If the good originate from the EU (mainly Italy), then shipped to the US, I presume tax and duty must have been levied then.
When it is shipped back to the UK, what is Tax/Duty payable then? That's the bit I don't really understand.
Any clarification will be welcome.
Originally Posted by clee1982
It's pretty straight forward, there is a limit on gift before it hits you with VAT (pretty low too...), a different limit if you don't decalre as gift.
Either way you can't get rid of VAT, the only way is to have sender declare it as 0 value (or something ridiculous low), remember you can't have it insured either. If you insure it they will VAT base on the insure amount.
So in the end of the day your typical bill is
20% VAT on (Declare Value + Postage Fee)
8 p worth of Parcel Force Handling Fee
This is speaking from personal experience...
Rememebr VAT is charagable on the combined value of the item as well as the shipping cost, so even if you declare 0 value on your item, if shipping cost is high enough, you will still get hit by VAT
This is speaking from personal experience, got hit by VAT twice..., I can dig out the exact amount at certain point (limits for gift and limits for other things).